Philanthropy After the Fearless Fund Settlement

On September 11, 2024, the Fearless Fund agreed to end a small business grant contest for Black women in a settlement deal with the American Alliance for Equal Rights. Across the country, many have been closely watching this case to see what it signifies for race-explicit grantmaking and programming, and we anticipate that this outcome may raise concerns.

Let’s not mince words: it is legally sound to fund race-explicit grants and programming in the United States. While the number of legal threats and attacks have risen in the wake of the Supreme Court’s affirmative action decision, many of those cases have rightly been thrown out of court on technical grounds.

The direct targeting of race-explicit programming is enraging, but it’s important to remember that this outcome is narrow and shouldn’t distract us. We know racial equity opponents selected this case in a strategic manner, hoping for a favorable outcome in a legal geography that is more likely to be hostile to race-explicit efforts. We can’t let one case dismantle our vision.

AAPIP and the Racial Equity Advancement and Defense Initiative (READI) are clear-eyed about the risks in the field and the rewards for doubling down in our convictions. We should be prepared for challenges and understand their roots, but we must also remember that there are legal defenses and proactive strategies.  Even in the face of scare tactics, setbacks, and disappointing outcomes, it’s our job to further the racial equity work we set out to do. Why? Because a race-explicit lens is the only way to be clear-eyed about fairness and opportunity in 21st century America.

What our society needs at this moment is leaders of conviction who won’t sacrifice race-explicit grantmaking. Many foundations say they aren’t making changes to their language or strategy, but what they say needs to show up in practice too. That means a vocal, visible commitment to continued support and investment.  As we process the Fearless Fund outcome, one thing is clear to us: it’s more important than ever that we keep going.

Stay tuned with ABFE – A Philanthropic Partnership for Black Communities, Asian Americans/Pacific Islanders in Philanthropy, Hispanics in Philanthropy, and Native Americans in Philanthropy for ongoing updates on our work to promote, expand, and defend race-explicit grantmaking and programming.